Four ways cards pay cash back
- Flat-rate: the same rate everywhere. Citi Double Cash and Wells Fargo Active Cash pay 2%, and Capital One Quicksilver pays 1.5%.
- Fixed categories: higher rates in set categories. Capital One Savor pays 3% on dining, entertainment, streaming and groceries. Blue Cash Preferred pays 6% at U.S. supermarkets (up to $6,000 a year) and 3% on gas and transit. Blue Cash Everyday pays 3% on groceries, gas and online retail (each up to $6,000 a year).
- Rotating 5%: categories change each quarter. You must activate, and 5% is capped at $1,500 per quarter. Chase Freedom Flex and Discover it work this way.
- Choose your own: BofA Customized Cash pays 3% in a category you choose, with a $2,500 quarterly cap shared with its 2% grocery rate. U.S. Bank Cash+ pays 5% in two categories you choose, with a $2,000 quarterly cap and quarterly enrollment.
Freedom Unlimited is a hybrid: a 1.5% base plus 3% on dining and drugstores.
The household we used
The Bureau of Labor Statistics' Consumer Expenditure Survey for 2024, released in December 2025, is the latest available. It reports these averages per household:
- Food at home (groceries): $6,224
- Food away from home (dining): $3,945
- Gasoline, other fuels and motor oil: $2,411
Together that's $12,580 a year. We assume all of it goes on a card, and that the grocery spending happens at stores that code as supermarkets. Real households will vary.
The worked example
| Card | Groceries ($6,224) | Dining ($3,945) | Gas ($2,411) | Annual fee | Net per year |
|---|---|---|---|---|---|
| 2% flat (Double Cash or Active Cash) | $124.48 | $78.90 | $48.22 | $0 | $251.60 |
| Capital One Savor | $186.72 (3%) | $118.35 (3%) | $24.11 (1%) | $0 | $329.18 |
| Blue Cash Everyday | $182.24 (3% to $6,000, then 1%) | $39.45 (1%) | $72.33 (3%) | $0 | $294.02 |
| Blue Cash Preferred | $362.24 (6% to $6,000, then 1%) | $39.45 (1%) | $72.33 (3%) | $95 after year one | $379.02 |
On these three categories alone, the Blue Cash Preferred leads after its fee. Savor is the best no-fee option, and the flat 2% card comes last.
Now add a second card
The table hides each category card's weak spots. Blue Cash Preferred pays only 1% on dining, and Savor pays only 1% on gas. Splitting spending between two cards fixes that.
- Blue Cash Preferred for groceries and gas, plus a 2% card for dining: $362.24 + $72.33 + $78.90 − $95 = $418.47
- Savor for groceries and dining, plus a 2% card for gas: $186.72 + $118.35 + $48.22 = $353.29, with no annual fees
Then put everything else on the 2% card: utilities, insurance, medical bills, shopping. That's where flat-rate cards earn their place.
When flat-rate wins anyway
- You shop at superstores or warehouse clubs. Amex and Capital One exclude Walmart and Target from groceries, and Amex excludes Costco and BJ's. Those purchases earn 1% on category cards but 2% on a flat card.
- Your spending is spread thin. If no category is big, the bonus barely matters.
- You want one card. A single 2% card is simple, and simple means you're less likely to use the wrong card.
- You travel abroad often. Pick a card without a foreign transaction fee (see no foreign fee cards).
Where rotating cards fit
A rotating card adds up to $75 a quarter at 5% ($1,500 × 5%) when the categories match your spending. Q4 2026 is a good example: Chase Freedom Flex covers groceries and dining, and Discover covers restaurants and utilities. It's a useful third card for people who will activate every quarter. See rotating category cards for details.
Next steps: how to choose a cash back card, or browse the best cash back cards. Card terms change often, so check the issuer's site before you apply.
Frequently Asked Questions
For spending outside bonus categories, yes. In our example using average 2024 household grocery, dining and gas spending, the 2% card earned $251.60, Savor earned $329.18, and Blue Cash Preferred netted $379.02 after its $95 fee. Pairing a category card with a 2% card did better still.
The Bureau of Labor Statistics Consumer Expenditure Survey for 2024, released December 19, 2025. It is the latest year available. Figures are averages per consumer unit, which roughly means a household.
Yes. The first $6,000 of U.S. supermarket spending earns 6% ($360). The remaining $224 earns 1% ($2.24), for $362.24 total.
Consumer Expenditures in 2024 — U.S. Bureau of Labor Statistics
Consumer Expenditure Surveys news releases — U.S. Bureau of Labor Statistics
Blue Cash Preferred Card — American Express
Blue Cash Everyday Card — American Express
Capital One Savor — Capital One
Citi Double Cash Card — Citi
Wells Fargo Active Cash Card — Wells Fargo
How credit card issuers classify purchases for bonus rewards — CNBC Select
Chase Freedom Q4 2026 categories — Chase Media Center
Discover cash back calendar — CNBC Select
Card terms, rates and fees change often and APRs are variable. Information was checked in October 2026; confirm current terms on the issuer's website before applying. MoneyVerge may be compensated by some card issuers; this does not affect our assessments.